Also Receives New InSight Order From Leading Korean Semiconductor Manufacturer

PLAINVIEW, N.Y., Oct 01, 2008 (BUSINESS WIRE) -- Veeco Instruments Inc. (Nasdaq: VECO), announced today that its new InSight(TM) 3D Automated Atomic Force Microscope (3DAFM) Platform has been accepted by a key global semiconductor customer for Critical Dimension (CD) Reference Metrology for Optical Proximity Correction (OPC) modeling. The InSight 3DAFM provides highly accurate, non-destructive, high-resolution three-dimensional (3D) measurements of critical 45nm and 32nm semiconductor features, coupled with the speed to qualify as a true fab tool. Veeco also announced that it received a new order for the system from a leading semiconductor device manufacturer based in Korea.

Mark Munch, Ph.D., Executive Vice President, Veeco Metrology, commented, "We are pleased that this customer, one that is known as a leader in Reference Metrology, has accepted the tool for this demanding application. The InSight 3DAFM provides the best available accuracy for OPC Metrology, reducing residual measurement error and improving OPC cycle times. This can significantly improve time to market on advanced semiconductor devices and reduce process development costs. We are also gratified that a key semiconductor device customer has chosen the InSight for a production-based gate CD metrology application at 45nm and below."

"Industry leaders such as Sematech have highlighted the need for improved OPC Metrology due to the limitations of current CD metrology tools," stated Paul Clayton, Vice President, Veeco's Automated AFM Business. "During the beta period, InSight 3DAFM was subject to extensive testing on a variety of OPC related structures such as lines, vias and line and space ends. Our customer's excellent results demonstrated that InSight has the lowest measurement uncertainty of any CD metrology tool."

About InSight 3DAFM

The InSight 3DAFM provides non-destructive, high-resolution three dimensional measurements of critical 45nm and 32nm semiconductor features, coupled with the speed to qualify as a true fab tool. Key applications include CD, sidewall angle and line width roughness on critical layers, including Gate and FinFet structures. The system contains a new high-precision X-Y stage with improved accuracy and a unique pattern recognition system with high-precision laser auto-focus capability. In addition, new AFM control techniques and proprietary probe designs enable improved precision, lower cost per measurement site and smaller feature measurement. Finally, system reliability is significantly enhanced to meet the demands of 45nm production-based metrology. Further information on InSight can be found at www.veeco.com/insight3dafm.

About Veeco

Veeco Instruments Inc. manufactures enabling solutions for customers in the HB-LED, solar, data storage, semiconductor, scientific research and industrial markets. We have leading technology positions in our three businesses: LED & Solar Process Equipment, Data Storage Process Equipment, and Metrology Instruments. Veeco's manufacturing and engineering facilities are located in New York, New Jersey, California, Colorado, Arizona, Minnesota and Massachusetts. Global sales and service offices are located throughout the U.S., Europe, Japan and APAC. http://www.veeco.com/

To the extent that this news release discusses expectations or otherwise makes statements about the future, such statements are forward-looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include the risks discussed in the Business Description and Management's Discussion and Analysis sections of Veeco's Annual Report on Form 10-K for the year ended December 31, 2007 and in our subsequent quarterly reports on Form 10-Q, current reports on Form 8-K and press releases. Veeco does not undertake any obligation to update any forward-looking statements to reflect future events or circumstances after the date of such statements.